Hanover approves merger with Chelsey Direct

Share this content:

Hanover Direct Inc.'s board has unanimously approved a cash merger agreement with Chelsey Direct LLC, the company's largest shareholder.

The merger agreement provides for the acquisition of the shares of Hanover's common stock that Chelsey does not already own at $0.25 per share.

In May, Chelsey withdrew an offer to take Weehawken, NJ-based Hanover private at $1.25 per share due to Hanover's worsening operations.

The multichannel marketer sells home, apparel and gift items under brand names such as Domestications, The Company Store, Company Kids, Silhouettes, International Male and Scandia Down.

Chelsey and its affiliates already own 77 percent of Hanover's common stock and all of the Series C Preferred Stock. As a result, Chelsey maintains approximately 92 percent of the voting rights of the company and has sufficient voting power to approve the merger without the vote of any other shareholder.

Hanover's board had previously engaged investment bank Goldsmith, Agio, Helms & Lynner to conduct an independent valuation of the company. The bank informed Hanover on Nov. 17 that the company's common stock has no value since the enterprise value of the company was less than the combined value of the secured debt and the outstanding preferred stock of the company.

close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above